LONDON, July 1, 2026, 22:05 BST
- RWS jumped 7.5% to 76.70p. The FTSE AIM 100 added 0.69%.
- The most recent RNS from the company was a total voting rights update out July 1, stating 371,163,323 shares outstanding.
- Consensus as of June 30 shows FY26 revenue at £708.2 million, average target price at 164p, according to .
- AI-linked revenue rose roughly 29% in H1 by one calculation, but the rest dropped around 4%.
RWS Holdings plc (LON:RWS) jumped 7.5% to 76.70 pence on Wednesday, outpacing the FTSE AIM 100 by 6.8 percentage points. The move came after London markets closed. Shares climbed 5.35p, putting about £19.9 million more on the company’s market cap, going by the latest voting rights tally.
RWS reported 371,163,323 ordinary shares on June 30, each with one vote and no treasury shares. At 76.70p per share, the equity value is about £284.7 million, matching the market cap.
RWS’s latest consensus, as of June 30, is for FY26 revenue at £708.2 million, adjusted pretax profit at £65.5 million, adjusted EPS of 13.2p and a dividend of 7.3p per share. All four analysts rate the stock a buy, with the average target at 164p.
| Measure | Current / derived figure | Investor read-through |
|---|---|---|
| Last price | 76.70p | Stock gained 7.5% today |
| Equity value | £284.7 mln | Figure uses July 1 voting rights |
| Consensus target price | 164p | Target is 114% above latest close |
| Implied equity value at target | £608.7 mln | Implied gain of roughly £324 mln |
| Market cap / FY26 revenue consensus | 0.40x | Cheap sales ratio for a software/AI play |
| EV / FY26 revenue consensus | 0.45x | Based on first-half net debt of £32.5 mln |
| EV / FY26 adjusted PBT consensus | 4.8x | Multiple uses FY26 adjusted PBT estimate |
RWS isn’t just a translation-services company anymore, and the valuation discount is in focus. In the first half, AI-related revenue made up 32% of the group, up from 26% the year before, the company said. Total revenue for the period was £360.3 million, up 5%. That means AI-related products and services brought in about £115.3 million, up from £89.5 million. Revenue from the rest of the business slipped to about £245.0 million from £254.8 million.
| H1 revenue bucket | H1 2025 estimate | H1 2026 estimate | Change |
|---|---|---|---|
| AI-related products and services | £89.5 mln | £115.3 mln | +29% |
| Revenue from other areas | £254.8 mln | £245.0 mln | -4% |
| Total group revenue | £344.3 mln | £360.3 mln | +5% |
That’s the question for investors: AI is already making a dent in group revenue, but non-AI business keeps slipping on this split. RWS said Generate posted solid double-digit organic constant currency growth, Transform fell, and Protect was up. The company maintained its targets for mid-single-digit organic constant currency revenue growth this year, higher profitability, and strong free cash flow.
CEO Ben Faes said RWS picked up “new clients across our three segments” and added that “momentum continues to build.” The company still sees full-year results in line with guidance. London South East
The profit story is messier. RWS said FX rates, after hedging, should lower full-year pretax profit by around £2 million. The Obviously deal is seen hurting this year’s profit by £1 million before turning positive in FY27. That all totals 4.6% of consensus for FY26 adjusted pretax profit.
Shares are still down 32% from AJ Bell’s high of 113.583p for the year, despite Wednesday’s gain. They’re 13% above the 68p low.
